Posted February 15, 2013 4:35pm
Let me preface this with the fact I am not licensed in Maryland and don't know anything about your laws there regarding payday loans. But there are time limits governing how long adverse information may be reported under federal law. See http://www.ohioconsumerhelp.com/sub/obsolete-CRA-info.jsp;jsessionid=DFF6B5B87021889C0AA7AEBE1DFE5F76
If the loan itself is in fact unlawful, I would respectfully disagree with my colleague. I would suspect under those circumstances the account should NOT be reported as in derogatory status if in fact, pursuant to the law of your state, you do not owe anything. Again, I'm not familiar with the law you reference, nor the the specifics of the information on your credit report.
But if inaccurate information is appearing, you should in fact dispute and the
furnisher of the information, and the credit bureaus would have an obligation to remove it. Here is a link on how to dispute the information. http://www.ohioconsumerhelp.com/sub/Dispute-page.jsp;jsessionid=DFF6B5B87021889C0AA7AEBE1DFE5F76
If the information is not removed subject to your dispute, I would suggest you contact a consumer advocate in your state familiar with both the Fair Credit Reporting Act, and your state laws. www.naca.net has an attorney search feature that will help you.
All the best to you.
NOTE: This Answer does not constitute legal advice. Every case is fact specific. To render a legal opinion, an attorney must engage in a consultation with a prospective client and review any pertinent documents. This communication does not create an attorney-client relationship with Attorney Amy L. Wells or WELLS LAW OFFICE, INC.